The CEF Group of Companies - Amazon Web...
Transcript of The CEF Group of Companies - Amazon Web...
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Integrated Annual Report presentation to the
Portfolio Committee on Energy
8 November 2016
The CEF Group of Companies
Strengthening the Group for long term sustainability
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Presentation Overview
Page 2
Introductions
CEF Group of Companies Overview
CEF Group Consolidated Performance & Strategy
Subsidiary Performance Overview
Group Strategic Response & Way Forward
1
2
4
5
6
CEF Group Highlights 3
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The Mandate of CEF is
derived from the CEF Act
(No 38 of 1977). The
mandate is in essence to
contribute to the security of
energy supply for the
country.
The Vision of CEF is to be
a leading integrated energy
company that provides
national sustainable energy
solutions for South Africa.
This way CEF contributes to
national energy security.
The Mission of CEF is to
grow our footprint in the
energy sector, to be the
catalyst for economic
growth and energy poverty
alleviation through security
of supply, and access to
acceptable (affordable)
energy in Africa
Role of CEF: Search for
appropriate energy
solutions to meet the future
energy needs of South
Africa, the SADC and the
Sub-Saharan African
region, including oil, gas,
and renewable energy
sources
• Contribute to security of energy supply & be a strategic partner to the Department of Energy
• Provide comfort to the state on energy sector goals support
• Reduce the country’s over dependency on Multinationals
• Align with government’s broad objectives (NDP) and act as a vehicle for government policy implementation
Overview of CEF, its mandate, vision and mission
The Key Drivers are:
1. Developmental
Objectives
2. Commercial Viability
3. Governance
4. Collaborative
Operating
Environment
This is the Basis of the
Group Score Card
Reason for
being
CEF (SOC) Ltd (“CEF”) is the holding company for a number of subsidiaries, which, when taken together, constitute the CEF Group
These subsidiaries also operate in the energy sector with commercial, strategic, regulatory and developmental roles
The CEF Group employs about 2100 people
Group Asset Value of : R35 Billion
STABILISE GROW LEAD
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CEF Group operates across the value chain
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PETROSA
Exploration & Production
• PetroSA Ghana
• All indigenous oil and gas opportunities
PASA
Promotion, Licensing and Regulating the exploration and
production of the country’s natural oil and gas resources and
data storage thereof
SFF
Tankage/Strategic
Stocks
Logistics Infrustructure
PETROSA
Project Development,
Feedstock processing
Energy Projects
Division
Renewables
Alternative Energy
Petro SA
GTL Refinery
Operations
iGas
Gas and Gas
infrastructure
PetroSA :
Marketing and supply of finished
products to end users to fuel
economic activity
Acquisition of
exploration rights and
search for hydrocarbons
below earth’s surface
Developments of oil
fields and extraction of
hydrocarbons from
reserves
The movement and
storage of hydrocarbons
using pipeline, ships,
value chain
maximisation &
Renewables initiatives The refining, processesing and
blending of hydrocarbons to
make fuels & chemical products
AEMFC – Mining coal in support of Power Generation & other mining activities
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•During 2015 and 2016, the world saw sustained low oil prices as a result of supply and demand key drivers. This was driven by weak global economic
growth mainly from China and developing economies.
•Due to its complexity, high risks, long lead times and capital intensity any impact on the Oil and Gas sector will have knock on effects on other
supporting industries. Upstream
• Slow recovery and low oil prices has affected the global upstream
(exploration and production)
• Over 1000 rigs remaining idle
• Over $200 billion slashed from E&P spending in 2015
• Major job cuts of at least 351 000 world-wide
Midstream
• Increased demand for crude storage facilities by Traders
• The Sub Sahara region has seen a number of Traders making
significant inroads for more presence across the value chain and
Multinationals re-evaluate their spending strategies
Downstream
• Undergoing rapid changes amidst recent global market
fluctuations.
• Industry moving towards stabilisation in the near term future.
Global refinery margins have improved significantly
Overview of the Oil & Gas Industry for the year under review
Impact on countries that rely on Oil Imports
• In Africa Balance Accounts impact to Nigeria, Angola and Mozambique
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CEF Group Consolidated Performance
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Highlights
Unqualified audit opinion issued by the Auditor-General
R16.2 Billion Cash Balance
R4.5 billion B-BBEE spend & R52.4 million spend on CSI projects
R600 million investment commitment into Renewable Projects
Positive growth in the PetroSA Ghana Investment
Progress made on the Continental Shelf Claim
Long term contractual Eskom Coal agreements
Construction of the 1st site of the 17MW landfill gas to power project
iGas/Rompco progress with Loop Line 2 in Mozambique project execution, to transport 7.8 million GJ/year more
gas into the country by January 2017
Tank Rentals Revenue growth of over 400% in the past 3 years.
Strengthening CEF Head office and bringing the required core capabilities in key roles to improve oversight.
Incorporation of Enterprise Risk Management initiatives & Progress on integrating Group HR Strategy
Positive Socio Economic contributions Page 7
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R3.6 m in SME Loans through our robust internal processes
65 New jobs and 274 sustained
The employment of local youth – their first job for many, and especially women. (Business start-up kit)
The support of local business mainly in the transport and construction sectors – change rooms, roads, staff
transport
Upgrade of Phola township municipal and social infrastructure – roads, schools, old age homes, creches and
parks
Built new quality homes for 25 families with water and electricity
Bursaries and Internship opportunities
Support youth in business – mine services and sponsorship
Sponsorship of schools – IT equipment, school shoes and clothing (Siyathokoza, Thuthuka and Hlanguphala
Primary Schools )
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Group contribution towards NDP Objectives
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Group Performance Summary
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Governance
• Total indigenous GTL production at PetroSA Not Achieved
• Strategic stock volumes held by SFF Not Achieved
• Coal sales by African Exploration Achieved
• Investment in two renewable energy projects, each with an investment value greater than R50m Achieved
• Signed agreements for the construction of a gas transmission pipeline Achieved
• Unqualified final audit Achieved
• Return on Capital Employed Achieved
• Operating cash flow / sales Achieved
• Depreciation / Capex ratio (Excluding Investments) Achieved
Development
Results
Operating Environment
• Number of fatalities caused by operations Not Achieved
• Disabling injury frequency rate Achieved
• Number of reportable environmental incidents Achieved
• Employment Equity Targets for race, women, youth, and people with disability Partially Achieved
• Discretionary spend on BEE Companies Achieved
Indicators
Financial Sustainability
Contribute to security of
energy supply
KPA
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R259 Million R2.8 billion R7.4 billion
R15.1 billion R16.2 billion R4.1 billion
R3.9 billion
R2.2 billion
Business performance by the numbers
Comprehensive Income
generated
Normalised
Profit After Tax Cash from
Operation
s
Proceeds from Rotation
of Strategic Stock
Solvency Cash
Balance
Increase in
Group Assets Project
Investmen
t
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Group financial analysis
During the 2015/16 financial year, the CEF Group
reported a net comprehensive income of R259 million
versus a loss of R14.2 billion for 2014/15 financial year
The increase in net comprehensive income of R14.4
billion is due to an increase in revenue of R2.2 billion,
decrease in costs of R11.4 billion and an increase in
income from associates of R45 million.
The group generated a comprehensive income of R259
million. The comprehensive income is made up of income
from associates (Rompco) of R305 million, R82 million
profit from AE, R54 million profit from CEF and combined
losses from SFF, PASA and PetroSA of R189 million.
Despite the comprehensive loss of R764 000, PetroSA
generated R2.5 billion cash from operations.
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Financial Analysis – Business Unit Financial Performance
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• The Group generated a revenue of R20.7 billion during
2015/16 financial year.
• The group revenue increased from R18.5 billion to R20.7
billion.
• The increase in revenue is due to rotation of strategic
stock, increase in tank rental income and coal sales.
• Proceeds from stock rotation is R3.9 billion
• Tank rental increased from R170 million to R576Million
• Coal sales increased from R235 million to R376 million
• The Group generated revenue of R20.7 billion during the
2015/16 financial. 76% of revenue is derived from PetroSA
which generated a revenue of R15.7 billion.
• 22% of the group revenue was generated by SFF, which
generated a revenue of R4.5 billion. The R4.5 billion
revenue is comprised of R3.9 billion from stock rotation
and tank rental income of R576 million
• AEMFC generated R376 million
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Financial Analysis: Balance Sheet (Assets)
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Assets Current- Non Assets Current Assets
The group has assets of R35.5 billion,
which are made up of non-current
assets of R14.8 billion and current
assets of R20.7 billion.
45.5% of the group assets is cash.
The group has non-current assets of
R14.8 billion.
The group non-current assets is
comprised of Production Assets of
R10 billion, intangible assets of R1.9
billion and financial assets of R1.3
billion.
The Group non-current assets
decreased by R 306 million.
The Production Assets were impaired
by R255 million during the year.
The decrease in non current assets is
due to rotation of strategic stock and
the write down of line fill, from R1
billion to R716 million.
The group has current assets of
R20.7 billion.
The current assets are made of cash
balances of R16 billion, inventory of
R2 billion and trade receivables of
R2.1 billion.
The Group current assets increased
by R4.4 billion.
The increase in current assets is due
to increase in cash, which came from
the rotation of strategic stock.
The group liquidity ratio is 3.4:1. Our
current assets can settle our short
term debt three times.
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Financial Analysis – Balance Sheet –Liabilities & Equity
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The group has current liabilities of
R6.billion.
The current liabilities are made up of
trade and other payables of R5.5 billion,
overdraft facility of R417 million and
other small debts.
The Current liabilities increased by R1.6
billion. The increase is mainly due to
transfer of income from SFF to EQF as
required by CEF Act.
The group has non current liabilities of
R14.3 billion.
The non-current liabilities are made of
decommissioning provision of R11 billion,
RBL of R1.2 billion, deferred tax of R1.4
billion and other liabilities of R137 million.
The Group’s non-current liabilities
increased by R2.2 billion.
The increase in non current liabilities is
due to increase in Decommissioning
provision, deferred tax and Loans.
Decommissioning liability increased by
R1.4 billion, deferred tax liability by R408
million and loans by R335 million.
The Group has equity of R15.1 billion.
The normalized return on equity is
19.6%.
The group is solvent because its assets
exceed liabilities by R15.1 billion.
Current Liabilities Non-Current Liabilities
Equity
Liabilities
The Group has liabilities of R20.4 billion.
The Liabilities are made up of non
current liabilities of R14.3 billion and
current liabilities of R6 billion
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Group Audit Opinion
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Financial opinion
o Unqualified with emphasis of matter relating to Significant uncertainties (PetroSA Ghana’s tax and PetroSA restructuring),
restatement of corresponding figures, material impairments and funding of abandonment provision.
o Additional matters were also reported about a review of SFF’s contracts.
Predetermined objectives
o No material findings, however material amendments were made to the performance report.
Compliance matters
o Material amendments were made to the AFS (expenditure, current liabilities and disclosure).
o Irregular, fruitless and wasteful expenditures were not prevented.
Internal control deficiencies
o Financial and performance management – Material amendments to commitments disclosure, current assets, current liabilities
and expenditure.
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Key Audit Findings
Page 16
Findings Management Intervention in 2016/17
• Investments in subsidiaries were impaired by R49, 4 million.
Loans to subsidiaries and associates were impaired by
R81,7 million and R24,4 million respectively.
• SFF R60.4 million for 300 000 bbls of crude oil loan to service
provider.
• Dilution from 81.5% Shareholding to a minority shareholding
in CCE.
• Recovered surface rights, which were transferred to AEMFC
and cash, in respect of the R24.4 million loan from
associates
• Legal review underway
• The unauthorised, irregular, fruitless and wasteful expenditure
of R82,6 million at a group level was as a result of the
Preferential Procurement Framework Act (PPPFA) not
followed for Diesel purchased for export sale at SFF to the
value of R80 million.
• Appropriate action will be taken to recover any losses and
address areas where weakness in the system has been
identified at SFF.
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Significant Uncertainties
PetroSA had notified employees in terms of section 189 of the Labour Relations Act 66 of 1995 of possible headcount reduction based on
operational requirements, on 24 February 2015. It is not possible, at this time, to measure reliably the mandatory obligations arising from
this notice, nor is it practicable to estimate their magnitude or possible timing of payment. Therefore, no amounts have been provided for
these obligations as at 31 March 2016.
PetroSA Ghana’s place of effective management changed to South Africa in 2012 and the company became a tax resident in RSA. The tax
legislation does not expressly deal with the tax treatment of the opening balances. Clarification has been sought from SARS for which we
await a response.
Findings Management Intervention in 2016/17
• Funding of abandonment provision: PetroSA has an
obligation to fully fund the provision for rehabilitation of its
operations valued at R10.7 billion. NEMA requires this
rehabilitation liability to be fully funded within 12 months
from year end.
• The National Treasury was not informed of the rotation
transaction of 10 million barrels of strategic crude oil
reserves as required in terms of section 54 (2)(d) of the
PFMA.
• The holding company (CEF SOC Limited) has committed to assist
PetroSA, through various support and oversight mechanisms. In addition,
PetroSA is working closely with the regulator to ensure PetroSA discharges
its responsibilities as required under National Environment Management
Act (NEMA). Other stakeholders involved include the Departments of
Treasury, Mineral and Resources and Environmental Affairs.
• All stock rotation contracts are under the legal review.
Key Audit Findings (Continued)
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In summary
CEF Group is a going concern and this assertion is based on the following:
The group generated a net comprehensive income of R259 million.
The normalised profit after tax is R2.8 billion.
The Group generated R7.4 billion cash from operations.
The group is solvent. Its assets exceed liabilities by R15 billion.
The group has cash balance of R16.2 billion.
R2 billion of the cash has been aside to fund the decommissioning/rehabilitation provision.
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Equalisation Fund Audit Opinion
Financial Opinion
Unqualified.
Predetermined Objectives
None as legal status is not resolved.
Compliance Matters
Material amendments were made to the AFS (revenue, expenditure and payables).
Internal Control Deficiencies
Leadership – Material corrections
Financial and performance management – Material amendments AFS
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Equalisation Fund Financial Position at 31 March 2016
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BALANCE SHEET 2016 2015 Movement Comment
R'm R'm R'm
Receivables from exchange
transactions 8 8 -
Receivables from non-exchange
transactions 2,207 78 2,129
Cash & cash equivalents 1,153 1,035 118
TOTAL ASSETS 3,368 1,121 2,247
Retained income 3,296 1,099 2,197
Receivables from exchange
transactions 11 - 11
Receivables from non-exchange
transactions 61 22 39
TOTAL EQUITY & LIABILITIES 3,368 1,121 2,247
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Subsidiary Performance
Overview
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PetroSA Income Statement as at 31 March 2016
INCOME STATEMENT 2016 2015 Movement Comment
R’m R’m
Revenue 15,734 18,048 (2,315) Reduction in revenue due to the lower crude price
($47 vs. $85)
Cost of Sales (12,338) (14,699) 2,361 Reduction in feedstock costs due to lower crude price
Gross Margin / (Loss) 3,396 3,350 46
Other Operating Income 100 94 6
Other Operating Expenses (1,354) (1,239) (115)
Investment Income 327 409 (82) Cash balances lower than previous year
Finance Costs (cash) (3) (152) 149 Included is notional interest on abandonment (amortisation
of deferred asset), lower because of previous year
Impairment
Tax (5) (9) 4
Cash profit 2,461 2,453 8
Non-cash items
Depreciation (1,854) (2,306) 452
Finance costs - Abandonment (484) (1,154) 670
Finance costs - Discounting (25) - (25)
Taxation (293) 883 (1,176)
Profit/(Loss) before Impairment (195) (124) (71)
Impairment (254) (14,450) 14,196 Lower in 2016 because of huge charge in 2015
Profit/(Loss) after taxation (449) (14,574) 14,125
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PetroSA Key Audit findings – Audit Opinion
Key Finding Areas Management Intervention in 2016/17
Material adjustments to financial statements submitted for auditing.
The financial statements submitted for auditing were not prepared in
accordance with IFRS, due to material misstatements being identified
after its submission pertaining to the voluntary severance
package.
All material adjustments which arose subsequent to 31 May 2016,
as a result of the audit process or management’s review, have been
included in the current AFS.
Overstatement of provision for voluntary severance package.
The overstatement of the restructuring provision as at 31 March 2016
is as follows:
• Amount recognised initially:
R19. 9 million
• Less amount paid per extended VSP (Jun’16):
R19.4 million
• Total overstatement as at 31 March 2016:
R176.5 million
Management has processed the adjustment of R176 million.
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PetroSA Key Audit findings – Audit Opinion (continued)
Key Finding Areas Management Intervention in 2016/17
KPI not approved by Department of Energy.
It was noted that the key performance measures and indicators
included in the shareholder's compact have not yet been agreed upon
by the Department of Energy as required by Treasury Regulation
29.2.2.
Adequate steps should be taken to ensure the timely approval of the
Shareholders Compact with the Department of Energy.
Deductibility of “capital expenditure incurred” before PetroSA Ghana
became tax resident in South Africa.
PetroSA Ghana’s place of effective management changed to South
Africa on 14 September 2012 and the company became a tax resident.
South African Income Tax legislation does not expressly deal with the
tax treatment of the opening balances of capital expenditure on
property, plant and equipment (PPE) (and intangible assets) prior to
becoming a tax resident.
Management has been unsuccessful in obtaining SARS ruling. Based on
the tax assessment for 2012, if no tax deduction is allowed for capital
expenditure the dispute resolution process will be followed to resolve the
deductibility of capital expenditure prior to commencing to be tax resident.
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Concluding Remarks
The period ahead will remain challenging, underpinned by a slow global economic recovery.
Going forward, the situation will require difficult but well-informed decisions to be made.
Immediate focus will include:
o Executing on our turnaround plan for the business.
o Continue with cost-saving, asset optimisation and revenue enhancement initiatives; without
compromising on SHEQ.
o Completing techno-commercial studies for key projects.
Delivering on our projects is without a doubt a non-negotiable. Our focus will be on sound
project execution.
Continuing to develop a solid foundation for PetroSA to be a National Oil Company
Our Status
Despite the diminished reserves outlook, PetroSA remains a going concern.
As such, we will continue to deliver on our mandate, as the national oil company, by
operating as a commercial entity and creating value for the Shareholder.
Looking Ahead
Page 26
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Highlights Strategic Challenges Challenges
Challenges Highlights
SFF Income Statement as at 31 March 2016
INCOME STATEMENT 2016 2015 Movement Comments
R'm R'm R'm
Revenue 4 587 193 4 394 Rotation (R3.9 billion), Normal business (R597 million)
Cost of sales -1 855 - -1 855 Crude Oil Stock rotate cost of acquisition
Gross Margin 2 732 193 2 539
Net Other Income 38 17 21 Foreign exch gains (R28 million) & Property rental (R7
million)
OPEX -835 -480 -354
US Dollar cash Restatem.(R294 million), Prov for bad debts
(R121 million), NMPP (R169 million), Liability for crude
delivery (R69 million)
Transfer to EQF -2 151 - -2 151 CEF Act Section 3(A ) Provision
Operating loss -215 -270 55
Investment income 132 109 24 Interest rates increased on higher cash balances
Finance costs -33 -18 -16 Notional interest on abandonment liabilities
Net Profit / Loss -116 -180
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Key Finding Areas Corrective Measures
Procurement process not followed on diesel
purchased
A policy on Irregular, Fruitless and Wasteful Expenditure will be submitted for approval to the
Accounting Authority (Board) to ensure that consequences on non adherence to Procurement
process are meted out.
Non Adherence to PPPFA A policy on Irregular, Fruitless and Wasteful Expenditure will be submitted for approval to the
Accounting Authority (Board) to ensure that consequences on non adherence to Procurement
process are meted out.
Shareholders Compact not timeously signed A procedure of submitting Corporate Plan for approval will be enhanced by accompanying the
Corporate Plan with the Shareholders Compact when submitting to both the company Board
and the Holding Company Board.
Disposal of Major asset without informing National
Treasury
Ministerial contract review will inform a corrective action to be implemented.
SFF Key Audit findings
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AEMFC Income Statement as at 31 March 2016
INCOME STATEMENT 2016 2015 Movement Comments
R'm R'm R'm
Revenue 376 235 141
Cost of sales (cash) (196) (131) (65)
Gross Margin 180 104 76 Increased volumes to ESKOM and transport
recovery increased margin
Net Other Income/ ( Expenses) (61) (73) 12 Royalty rights with Glencore expired in 2015
Investment Income 7 5 2
Finance costs(cash) (1) 0 (1)
Tax (7) (15) 8 2015 income tax included elements of 2013
and 2014 profits
Cash Profit 118 21 97
Non-cash items
Depreciation (14) (16) 2
Abandonment provision 0 0 0
Taxation (20) 9 (29) Increased profits and capital allowances fully
utilised
Profit / Loss before Impairment 84 14 70
Impairment (1) 0 (1)
Profit / Loss for the year 82 14 69
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AEMFC Key Audit findings
Key Finding Areas Management Intervention in 2016/17
Incorrect classification of property, plant and
equipment as non current assets held for sale. Audit adjustments processed
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Highlights Strategic Challenges Challenges
Challenges Highlights
iGas Income Statement as at 31 March 2016
INCOME STATEMENT 2016 2015 Movement Comments
R'm R'm R'm
Revenue No revenue generated as iGas is a shareholder in an operating
company.
Cost of sales (cash) No cost of sales as no revenue was generated.
Gross Margin N/A
Net Other Income/ ( Expenses) (15) (13) (2) Net movement is due to increase in research/development costs.
Investment Income 168 139 29 Increase due to increase in dividends from an operating company
and interest income from bank.
Finance costs(cash) (1) (6) (5) Decrease due to interest bearing loan repaid during the year.
Tax (5) (2) (3) Due to increase in investment income received.
Cash Profit 147 118 29
Non-cash items
Depreciation - - -
Abandonment provision - - -
Taxation - - -
Profit / Loss before
Impairment 147 118 29
Impairment - - -
Profit / Loss for the year 147 118 29
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Highlights Challenges
Challenges Highlights
PASA has no key audit findings as it received a clean audit report from the
Auditor General
PASA Income Statement as at 31 March 2016
INCOME STATEMENT 2016 2015 Movement Comments
R'm R'm R'm
Revenue 14.7 28.7 (14.0) Lower interest in data / investment
Cost of sales (cash) - - -
Gross Margin 14.7 28.7 (14.0)
Net Other Income/ ( Expenses) (106.1) (85.6) (18.0)
Investment Income 17.3 19.4 (2.1) Lower cash balances
Finance costs(cash) - - -
Tax - - -
Cash Profit (71.6) (37.5) (34.1)
Non-cash items
Depreciation (2.5) (2.5) -
Abandonment provision - - -
Taxation - - -
Profit / Loss before Impairment (74.1) (40.0) (34.1)
Impairment - - -
Profit / Loss for the year (74.1) (40.0) (34.1) Increase use of reserves to fund operations
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Renewables Energy Projects –A division of CEF
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CSP projects :
The 100 MW ACWA Redstone Project (in which CEF is a 15% shareholder) awaits the signing of the Power Purchase
Agreement by Eskom in order to progress to financial close.
Ministerial approvals for the 150 MW Solis & 150MW KGS projects which were submitted in Bid Window 4.5 of the RE IPP
Procurement Programme have been received. The 2 Projects are awaiting adjudication by the DoE.
The Solar Park
The Solar Park determination was revised wherein CEF and Eskom will now be minority shareholders.
Project awaits the selection of a strategic partner by DoE.
The gas to power programmes
The Ministerial determination for the 600 MW gas to power programme provides for the participation of SOCs as minority
shareholders. The SOCs will also have a role on the 3,126MW Gas IPP procurement being undertaken by the IPP Office.
CEF is engaging its shareholder on the role of CEF and its subsidiaries on the abovementioned programmes
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Energy Project Division Key Strategic Focus Areas for 2016/17 and beyond
01 03 02
Renewable Energy Industry
Partnerships
Strategic partnership with key
partners for sharing of financial,
human capital and best practice
resources to further entrench CEF
as a leader in the Renewable space.
Target partners include Eskom,
DBSA, IDC, PIC and private sector.
Solar Park
Participation
Once the role of CEF has
been defined, CEF will
participate in this initiative to
produce solar power and
support local industrialisation
of RE technologies.
Diversifying Our Project
Portfolio
Advance the development of
liquid fuels projects, distributed
RE power generation
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Aware of Group challenges
we have developed a
Group Strategic Response
for dealing with our
challenges in holistic
manner
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Strategic Challenges
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As a Group that operates right across the value chain we are faced with a number of strategic challenges both
internal and external that have an impact on our business operations and influence our overall strategy execution.
Access to feedstock for the GTL Refinery
Funding the rehabilitation provision
As a result of volume drop and low oil prices cash balances at PetroSA are declining
High turnover and vacancies in key positions
Oil and Gas industry long lead times and operational risk
Poor project execution
Lapses in governance (currently under review)
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Group Strategic Response & Way Forward
As we continue to strengthen the Group for long term sustainability our priorities will entail the following:
We have a plan for turning the CEF Group around and thus contribute meaningfully to the broader NDP
Objectives in line with Vision 2025.
Solidifying PetroSA and addressing issues of feedstock and thus create a firm foundation for a commercially
viable NOC. The strategic framework for the NOC is already in progress.
Working with other government entities we are confident of finding a solution for PetroSA’s abandonment liability
Committed and capable leadership is essential to driving business performance and we will bring about the
desired stability through key appointments rights across the Group and develop staff to improve project execution
We will deal decisively with issues of governance and lapses in controls and restore stakeholder confidence.
Over the next couple of years we will be investing substantially to grow the Group and strengthen our balance
sheet and grow our business through strategic partnerships that foster long term sustainability
Operational excellence and Strategic Partnership will be at the core of our strategy supported by a robust
Enterprise Risk Management philosophy.
As we Hive Off entities such as PASA and AE, diversifying our revenue streams will become paramount
Strategic Stakeholder Management will be a key focus for creating sustainable symbiotic relationships
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Thank You